What is Virtuals Protocol (VIRTUAL)?

Deep Dive

1. Purpose & Value Proposition

Virtuals Protocol aims to solve coordination and value creation for autonomous AI in Web3. It moves beyond single AI models to create an economy of interactive AI agents. These agents—like AI influencers, trading assistants, or game characters—can autonomously perform tasks, hold assets, and generate revenue. The protocol provides the essential payment, coordination, and ownership layer for this "agentic commerce," turning AI from a tool into a participant in the digital economy (Crypto.com).

2. Technology & Tokenomics

Built primarily on Ethereum Layer-2 network Base, the protocol uses a bonding curve mechanism for agent creation. Minting a new AI agent requires locking 100 VIRTUAL tokens into a liquidity pool, pairing the new agent token against VIRTUAL. This process reduces the circulating supply of VIRTUAL, creating a deflationary pressure. The VIRTUAL token serves as the system's lifeblood: it's needed for creation, facilitates trading, pays for agent services, and is used for governance via a veVIRTUAL (vote-escrowed) model.

3. Ecosystem Fundamentals

The protocol's core functionality is its marketplace for AI agents. Notable agents include Luna, a 24/7 live-streaming AI influencer; aixbt, a crypto market intelligence platform; and Ribbita, a social prediction agent. A key innovation is the "60 Days" reversible trial for founders, allowing them to test token demand with a built-in refund mechanism, reducing risk for early participants (Coinspeaker). The ecosystem is expanding into robotics through a partnership with OpenMind AGI, demonstrating a path from software to physical-world automation.

Conclusion

Fundamentally, Virtuals Protocol is building the economic and technical substrate for a future where AI agents are persistent, owned, and economically active entities. How will the balance between agent autonomy and human governance evolve as this economy matures?